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Principles of Service Marketing and Management_9

Tham khảo tài liệu 'principles of service marketing and management_9', khoa học xã hội, kinh tế chính trị phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | CHAPTER FIFTEEN EMPLOYEE ROLES IN SERVICE ORGANIZATIONS 3 3 5 spends all its resources trying to recruit both new customers and new employees. Loyal employees by contrast know the job and in many cases the customers too. To the extent that an organization s culture leads to long-term employees who are customer oriented knowledgeable and remain motivated better service and higher customer retention should result. This is especially true for high-contact businesses that require customers to be on-site during service delivery. Researchers have been able to document the economic value of both customer retention and employee retention. For example Sears Roebuck and Company a major department store chain in the United States spent more than three years rebuilding the company around its customers after experiencing the worst year of financial returns in 1992 in its long and highly profitable history. In the course of refocusing the company s strategy top executives at Sears developed a business model that tracked success from management behavior through employee attitudes to customer satisfaction and ultimately to financial performance. Sears has been using its employee-customer-profit model to measure employee and customer satisfaction and the resulting impact on the bottom line since 1995.The results have been encouraging. In 1998 both employee and customer satisfaction increased by 4 percent which translated into more than 4 million in additional revenues for the year.23 Cycles of Failure Mediocrity and Success All too often bad working environments translate into dreadful service with employees treating customers the way their managers treat them. Businesses with high employee turnover are frequently stuck in what has been termed the Cycle of Failure. Others which offer job security but little scope for personal initiative may suffer from an equally undesirable Cycle of Mediocrity. However there is potential for both vicious and virtuous cycles in service employment .